Bahria Town Founder Faces Intensifying Legal Challenges
An Islamabad court has taken steps to declare Malik Riaz, founder of Bahria Town, and his son Ali Riaz Malik as absconders in two major money laundering cases. The directive was issued by Additional District and Sessions Judge Nasruminallah Baloch during a hearing on Saturday, where the judge ordered the initiation of proclamation proceedings against the two accused and adjourned further hearings until September 30.
The cases, registered by the Federal Investigation Agency’s (FIA) Anti-Money Laundering Wing, allege that Malik Riaz and his associates illegally transferred large sums of money abroad, reportedly to finance luxury property developments in Dubai. According to the FIA, Bahria Town’s funds were used to funnel money out of Pakistan through unregulated channels, including hawala and hundi networks.
Last week, the same court distributed charge sheet copies among three co-accused: retired Colonel Khalilur Rehman, Malik Riaz’s personal staff officer, along with Mushtaq and Imran. Rehman appeared in person to receive the challan, while Mushtaq attended physically and Imran joined via video link. Both have been summoned for the next hearing in person.
Safari Hospital Allegedly Used to Launder Rs1.12 Billion
The legal developments come amid mounting allegations against Malik Riaz. Last month, Information Minister Attaullah Tarar revealed that authorities had obtained incontrovertible evidence of large-scale money laundering and corruption tied to Riaz and his company. He stated that Safari Hospital in Rawalpindi was allegedly used as a “front office” to hide illicit funds and financial records.
According to Tarar, ambulances from the hospital were reportedly used to transport cash and documents discreetly. A recent FIA raid uncovered Rs1.12 billion in laundered money, with officials expecting this amount to increase as the investigation progresses. The chief financial officer and finance director of Bahria Town have also been linked to the network of illegal money transfers.
The minister emphasized that the ongoing probe targets Malik Riaz, his family, and senior company officials, not residents or investors in Bahria Town communities.
